December 31, 2009
Two Types Of Insurance Fraud You Should Always Be Aware Of
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Some dishonest agents will try these forms of fraud on you, so be prepared There are many different ways that a crook can commit insurance fraud and take advantage of well intentioned individuals... |
Some dishonest agents will try these forms of fraud on you, so be prepared
There are many different ways that a crook can commit insurance fraud and take advantage of well intentioned individuals that never see the problems coming. These dishonest dealers can be found in every part of the United States and defraud thousands of individuals each year. There are two types of insurance fraud that all individuals should be aware of, and be on the lookout for, so that they do not get taken advantage of.
The first type of insurance fraud that individuals should be aware of is paying premiums for policies that do not exist. Each year, hundreds of individuals discover that the insurance policy that they thought they were purchasing by paying their monthly premium did not exist and their money was going towards other things. This type of insurance fraud costs individuals hundreds of thousands of dollars each year.
There are several ways to ensure that you are not taken advantage of in this manner. One way is to never write checks for payment of an insurance premium to an individual, such as your insurance broker. If the broker asks you to make out the check for the insurance premium to them personally or tells you that they will forward the payment for you, it is a big red flag that something is wrong with the policy.
Another way to ensure that you are not taken advantage of by dishonest dealers is to always request documentation for every policy and payment made and review these items carefully for anything that does not seem right. Individuals that commit insurance fraud do not like to provide documentation of their actions, as it can later be used against them in court if they are ever caught. If you are sure to request documentation of every transaction, a crook will lose interest in you and you will be spared the havoc that this kind of fraud can cause in your life.
In some cases, the dishonest dealer will create false insurance certificates to give to the clients in order to make the insurance policies seem more legitimate. It is important that the individual that receives the certificate examine the certificate closely to ensure that the item does not look like a fake or contain inaccurate information. It is also important for the individual that is purchasing the insurance policy has a way to contact the insurance company directly, without having to go through the insurance broker, in the event that they have any problems with the broker or have questions about their policy.
The second type of insurance fraud is not as easily recognized as the first, but is much more prevalent across the United States. This type of insurance fraud occurs when a dishonest dealer convinces an individual to purchase much more insurance than they need in order to secure larger commissions for themselves. The individuals that are generally affected by this type of insurance fraud the most are elderly individuals. When this type of insurance fraud occurs, it is often many years before the individual finds out they have paid a great deal of money for very little coverage and the rest of their money has somehow stuck to the insurance broker's pockets. This is why it is so important to go over or have a trusted loved one go over all of the details of the insurance policy, so you know exactly what you are paying for. Insurance fraud and dishonest brokers can cause a great deal of heartache and it is best to be on the lookout for fraud.
Recommended Reading
- Credit Card Insurance As A Means Of Protecting Against Fraud
- Stay Legal! Avoiding Insurance Fraud
- Don't be Victimized by Health Insurance Fraud
- The Role of the Health Insurance Broker
- Choosing The Right Car Insurance Broker
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